Japanese Automakers Invest $11 Billion to Make India a Global Manufacturing Hub
Japanese car giants Toyota, Honda, and Suzuki are ramping up investments in India, collectively committing around $11 billion to expand production and build new factories, signaling the country’s growing prominence in the global auto industry. The move comes as automakers seek to reduce dependence on China and capitalize on India’s vast labor force, competitive costs, and favorable policies under Prime Minister Narendra Modi’s government.
Toyota, the world’s largest carmaker, is localizing hybrid production and plans to launch 15 new and refreshed models in India by 2030, aiming to raise its market share from 8% to 10%. Suzuki, through Maruti Suzuki, intends to double its output to 4 million cars annually and strengthen exports, while Honda is preparing to make India a production and export base for its upcoming “Zero series” electric vehicles, targeting 2027 for rollout.
Japan’s direct investment in India’s transport sector has surged sevenfold since 2021, even as investment in China plummeted. Analysts say India’s restrictions on Chinese automakers like BYD and MG Motor have inadvertently benefited Japanese firms, giving them a competitive edge. With India’s auto exports rising 15% last fiscal year and local demand remaining strong, the nation is fast emerging as Japan’s favored alternative to China in the global automotive supply chain.
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